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A. Business Types

Ex.2. Read the text and answer the questions:

1. What company do you work for?

2. What type of ownership does your company have?

3. What company would you like to work for: your own company, a multinational company, etc?

There are many types of business entity defined in the legal systems of various countries.

Some British types are listed below:

  • Sole proprietorship/Sole trader (It’s a for-profit business owned by one person. The owner may operate on his or her own or may employ others.)

  • PLC or public limited company is a limited liability company that sells shares to the public. In the UK a PLC usually must include the abbreviation "plc" at the end or as a part of its legal company name.

  • Ltd. or Limited company has shareholders with limited liability and its shares may not be offered to the general public, unlike those of a public limited company (plc).

In the United States the main business types are the following:

  • Corp., Inc. (Corporation, Incorporated) are used to denote corporations. However in some states other suffixes may be used to identify a corporation, such as Ltd., Co./Company and others.

  • Doing Business As (DBA) denotes a business name used by a person that is different from the person's true name.

  • LLC, LC, Ltd. Co. (limited liability company) is a form of business whose owners enjoy limited liability, but which is not a corporation.

  • PLLC (professional limited liability company): Some states do not allow certain professionals to form an LLC (doctors, lawyers, accountants). The liability limitation only applies to the business side, not to the service side: the level of medical care, legal services provided to clients.

B. Business Divisions

Ex. 3. Read the text and answer the following questions:

1. Which of these business sectors do you work in?

2. Can you name a company in each sector?

There are many divisions and subdivisions of businesses. The authoritative list of business types for North America is generally considered to be the North American Industry Classification System, or NAICS. It is used by business and government to classify business establishments according to type of economic activity in Canada, Mexico and the United States. There are analogies in other countries:

  • Statistical Classification of Economic Activities in the European Community;

  • Russian Economic Activities Classification System (OKVED);

  • South African codes.

Naics Sectors

11

Agriculture, Forestry, Fishing and Hunting

21

Mining

22

Utilities

23

Construction

31-33

Manufacturing

42

Wholesale Trade

44-45

Retail Trade

48-49

Transportation and Warehousing

51

Information Technology

52

Finance and Insurance

53

Real Estate and Rental and Leasing

54

Professional, Scientific, and Technical Services

61

Education Services

62

Health Care and Social Assistance

71

Arts, Entertainment, and Recreation

Utilities produce public services such as electricity or sewage treatment, usually under a government charter.

Financial businesses include banks and other companies that generate profit through investment and management of capital.

Real estate businesses generate profit from the selling, renting, and development of properties, homes, and buildings.

Transportation businesses deliver goods and individuals from location to location, generating a profit on the transportation costs.

Manufacturing is the use of machines, tools and labour to produce goods for use or sale. The term may refer to a range of human activity, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Such finished goods may be used for manufacturing other, more complex products, such as aircraft, household appliances or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end users - the "consumers". Some industries, such as semiconductor and steel manufacturers use the term fabrication instead. Examples of major manufacturers in the North America include General Motors Corporation, General Electric, and Pfizer. Examples in Europe include Volkswagen Group, Siemens, and Michelin. Examples in Asia include Toyota, Samsung, and Bridgestone.